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Our Verdict
Our Verdict
National Debt Relief, a debt settlement firm, negotiates with creditors to reduce consumer debt. They offer free consultations and will customize plans to make debt payoff affordable.
Depending on factors like your debt size, budget and negotiated amount, you could pay off your debts within 24 to 48 months. On average, consumers completing the program see a 23% decrease in enrolled debt after fees.
A big plus is that National Debt Relief doesn’t collect any fees until a settlement offer is received from the creditor, the client approves the settlement and at least one settlement payment is made to the creditor.
The drawback is that the fees for debt settlement can be relatively hefty. On average, fees are between 15% and 25% of the total debt enrolled. So, if your enrolled debt is $8,000, you may pay between $1,200 and $2,000 in fees. While some may attempt debt settlement independently, many find professional assistance worthwhile despite associated fees.
Pros
- Save money on interest and escape debt faster
- Eliminate creditor calls and collection actions
- Could help you avoid bankruptcy
- Monthly payment may be less than what you’re paying now
- Simple signup process and free consultation
Cons
- National Debt Relief’s services aren’t free
- Credit score will likely go down temporarily
- Creditors might not agree to the settlement offer
- Certain debts are ineligible
On Nationaldebtrelief.com's Secure Website
Minimum debt required
$7,500
Average settlement fee
21%
Enrolled clients
500,000
Table of Contents
- National Debt Relief Overview
- What Does National Debt Relief Do?
- How Does National Debt Relief Work?
- National Debt Relief Fee Structure
- How Will National Debt Relief Affect My Credit?
- National Debt Relief Reviews
- How To Sign Up for National Debt Relief
- Alternatives to National Debt Relief
- Is National Debt Relief Legit?
- Methodology
- Frequently Asked Questions (FAQs)
Show more
Why You Should Trust Us
National Debt Relief Overview
Founded in 2009, National Debt Relief has assisted consumers with unsecured debts for 15 years. They work with customers with at least $7,500 in unsecured debt, such as credit cards, personal loans, medical bills, business debts and private student loans. There’s no upper limit on the debt amount. However, they do not handle debt from lawsuits, IRS obligations, utility bills, federal student loans, auto or home loans or other types of secured debts.
Partnering with a debt settlement company like National Debt Relief can help people avoid lawsuits by negotiating with lenders to reduce debt and establish affordable repayment plans.
According to a report by the Consumer Financial Protection Bureau (CFPB), credit card companies sue for non-payment in about one out of every seven cases, nearly 15% of the time. The debts involved in these lawsuits typically range from $2,700 to $12,300.
Looking To Reduce And Pay Off Debt?
Learn More About How National Debt Relief Can Help You
On Nationaldebtrelief.com's Secure Website
What Does National Debt Relief Do?
They help consumers negotiate debt to lower payments. They cover a wide range of unsecured debts, including:
- Credit cards
- Medical bills
- Personal loans
- Lines of credit
- Collections
- Repossessions
- Certain business debts
- Certain student debts
If you’re behind on a different kind of loan, such as a mortgage, it’s a good idea to reach out to your lender to see what options might be available for getting caught up.
National Debt Relief also offers referrals for credit counseling, debt consolidation and bankruptcy services if their debt relief plan isn’t the best option for you.
How Does National Debt Relief Work?
National Debt Relief negotiates with your creditors on your behalf to help resolve your debts. The goal is to help you pay off debts for less than what’s owed and escape debt faster.
Here’s an overview of how it works:
- 1. National Debt Relief creates a personalized debt plan for you based on your budget and financial situation.
- 2. You make one payment each month into your secured savings account.
- 3. National Debt Relief negotiates with your creditors to reach a settlement agreement.
- 4. Once an agreement is reached, your creditors get paid from the money in your account.
- 5. The remaining debt balance is canceled, and you pay nothing else to the creditor.
The process continues until all the debts you ask National Debt Relief to negotiate are gone. The company estimates that it takes at least 24 to 48 months for clients to become debt free if they stick to their debt repayment plan.
National Debt Relief Fee Structure
National Debt Relief operates on a fee-based model. Clients are only charged fees when they agree to a plan.
The process starts when the client’s creditor submits a settlement offer and the client agrees to the settlement. Lastly, at least one payment towards the settlement must be made to the creditor to complete the process. Once your settlement is in place and you begin repaying the debt, National Debt Relief will
The fees, on average, range from 15% to 25% of the total enrolled debt. If the debt enrolled in your settlement is $10,000, your fees could range from $1,500 to $2,500. These fees are added to the amount you pay into a secured savings account each month while your debts are being negotiated
How Will National Debt Relief Affect My Credit?
One condition of this debt relief plan is to stop making payments to creditors and focus more on making monthly payments to your secured savings account. The longer creditors go without receiving payments, the more open they’ll be to negotiation.
Payment history accounts for 35% of your FICO credit score, so enrolling in a plan with National Debt Relief could negatively impact your credit rating. The extent of that impact, however, depends on whether you’re still current on your bills or not.
If you’re already several months behind, then a few more late payments might not make much of a difference to your credit score since it’s likely taken a big hit already. While late payments can remain on your credit reports for up to seven years, the impact on your score lessens over time.
On the other hand, if you’re still current on bills, even one late payment could cost you significant points. In that scenario, you might want to consider other options, such as a debt management plan or debt consolidation, which can have less of a negative impact on credit scores.According to National Debt Relief, the majority of clients with low credit scores graduate the program with an increase in their credit.
National Debt Relief Reviews
This information is accurate as of April 2024.
| Reputable Sources | Total Reviews (Last 12 months) | Star Ratings | Customer Complaints | Closed Customer Complaints |
| TrustPilot | 3,247 | 4.7 | 3% less than 3 stars | N/A |
| BBB | 3,393 | 4.7 | 289 | 129 |
How To Sign Up for National Debt Relief
If you’re interested in debt relief services, you can get started with National Debt Relief online or over the phone. Here’s what’s involved.
- Visit National Debt Relief’s website and select Apply or call 800-287-1591 to start the process.
- Provide National Debt Relief with your name, email address, and estimated amount of debt.
- Complete your free consultation with a debt coach, who will evaluate your situation and present debt relief solutions for you.
- From there, they’ll create a personalized debt relief plan that fits your current financial situation.
- Once you agree to a plan, you’ll make one monthly payment into your secured savings account which you control.
National Debt Relief’s approach helps you focus on controlling your debt in less time, rather than only making minimum payments for several debts all at the same time.
National Debt Relief can help with the following debts:
- Credit cards
- Medical bills
- Personal loans
- Lines of credit
- Collections
- Repossessions
- Certain business debts
- Certain student debts
If you’re behind on a different kind of loan, such as a mortgage, it’s a good idea to reach out to your lender to see what options might be available for getting caught up. National Debt Relief also offers referrals for credit counseling, debt consolidation and bankruptcy services if their debt relief plan isn’t the best option for you.
Alternatives to National Debt Relief
Freedom Debt Relief vs. National Debt Relief
National Debt Relief and Freedom Debt Relief are popular debt settlement companies that offer free consultations and negotiate with creditors on your behalf to lower your debt. They’re comparable in their services, minimum debt requirements and cost.
Minimum debt: $7,500
Types of debt:
- Credit cards
- Personal loans
- Lines of credit
- Medical bills
- Collections
- Repossessions
- Business debts
- Certain student debts
Fees: 15%-25% of the total enrolled debt amount
National Debt Relief vs. Accredited Debt Relief
National Debt Relief and Accredited Debt Relief both offer debt settlement services, which include a free consultation and negotiating debt on your behalf and consolidating debt into one payment.
Accredited Debt Relief also offers debt consolidation loans, which combine all of your debt into one loan. A debt consolidation loan can save you money by paying off high-interest debt with one loan that has a lower interest rate. It can also help you keep track of debt because instead of paying multiple creditors, you’re just paying one. Its affiliated lenders offer consolidation loan options ranging from $1,000 to $100,000, with APRs between 4.9% to 35.99%, origination fees varying from 1% to 6% and loan terms extending from 4 to 84 months.
Minimum debt: National Debt Relief: $7,500; Accredited Debt Relief: $10,000
Types of debt:
- Credit cards
- Personal loans
- Lines of credit
- Medical bills
- Collections
- Repossessions
- Business debts
- Certain student debts
Fees: National Debt Relief: 15%-25% of total enrolled debt amount; Accredited Debt Relief: 25%
Choosing the Right Company
Since both companies offer similar products to National Debt Relief, determine which one will offer you the lowest fee and meet your overall needs. Shopping around often leads to the best rates and service that fits your requirements.
Is National Debt Relief Legit?
National Debt Relief is a legitimate company that has helped hundreds of thousands of people negotiate their debts. The company’s debt coaches are certified through the International Association of Professional Debt Arbitrators (IAPDA). National Debt Relief is also a member of the American Fair Credit Council (AFCC).
Methodology
Forbes Advisor staff considered 18 important factors, such as loan amounts, APR ranges, fees, terms, customer service, and user experience, when creating this review. The editorial staff in charge of scoring, fact-checking and this overall evaluation have more than 25 years of combined expertise in editing and personal finance.
Frequently Asked Questions (FAQs)
What does National Debt Relief do?
National Debt Relief offers solutions for you to pay off or lower your debts for less than you owe. The company acts as a go-between for you and your creditors to negotiate settlement agreements, so you can get out of debt faster.
How much does National Debt Relief cost?
The fees you’ll pay to use National Debt Relief range from 15% to 25% of the enrolled debt amount, depending on where you live. These fees are added to the amount you pay into a secured savings account each month while your debts are being negotiated.
Does National Debt Relief work with IRS debt?
National Debt Relief does not offer assistance with negotiating back tax debt owed to the IRS or tax debts owed to state revenue agencies. If you have unpaid tax debts, you may be able to work out a payment plan with the IRS. Alternatively, you may want to consult a tax attorney to determine the best way to approach repayment of back taxes.
Who is eligible for National Debt Relief?
You may be eligible to enroll in a debt plan with National Debt Relief if you have at least $7,500 in debt. Eligible debts include credit card balances, medical bills, personal loans, lines of credit and certain types of business or student debt.
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